sur insuamarketsurvey2010 en 2010

8/3/2019 SUR InsuaMarketSurvey2010 en 2010

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Saudi Arabian Monetary Agency Insurance Supervision Department

The Saudi Insurance Market Report

2010


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SAMA Insurance Supervision Department 1The Saudi Insurance Market Report (2010)

Introduction 4

Insurance Market Performance - Overall

Gross Written Premiums 6

Insurance Penetration 7

Insurance Density 8

Gross Written Premiums by Line of Business 9

Net Written Premiums by Line of Business 11

Retention Ratio by Line of Business 13

Gross Claims Paid by Line of Business 14

General and Health Net Earned Premiums vs. Net Claims Incurred 15

Market Profitability 16

Balance Sheet - Policyholders Assets 17

Balance Sheet - Shareholders Assets 18

Balance Sheet - Policyholders Liabilities and Equity 19

Balance Sheet - Shareholders Liabilities and Equity 20 Insurance Market Performance - By Line of Business

Health Insurance 22

Protection and Savings Insurance 23

Motor Insurance 24

Property/ Fire Insurance 25

Table of Contents


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Table of Contents

Engineering Insurance 26

A&L and Other Insurance 27

Marine Insurance 28

Energy Insurance 29 Aviation Insurance 30

Other Market Indicators

Commissions Incurred by Line of Business 32

Employees Breakdown by Nationality 33

Insurance Market Structure 34

Capitalization of Insurance Companies 35

Appendix: Data Tables

Table 1: Gross Written Premiums by Line of Business 37

Tables 2 & 3: Insurance Penetration and Density 38

Table 4: Net Written Premiums by Line of Business 39

Table 5: Retention Ratio by Line of Business 40 Table 6: Gross Claims Paid by Line of Business 41

Table 7: Commissions Incurred by Line of Business 42


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3

Introduction

Introduction


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Introduction

In 2010, Gross Written Premiums (GWP) in the Saudi insurance market reached SR 16.4 Billion, up from SR 14.6 Billion in 2009. Thisrepresents an increase of 12.2%, compared to a 33.8% growth rate in 2009:

Health insurance GWP, which represent 53% of the insurance market, increased by 19.2% to SR 8.7 Billion in 2010 compared to SR7.3 Billion in 2009

General insurance GWP, which represent 41% of the insurance market, increased by 6.5% to SR 6.7 Billion in 2010 compared to SR6.3 Billion in 2009

Protection & savings (P&S) insurance GWP, which represent 6% of the insurance market, decreased by 3.1% to SR 0.97 Billion in2010 compared to SR 1 Billion in 2009

This report is based on the data collected from 34 insurance and reinsurance companies


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5




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Gross Written Premiums

Gross Written Premiums(2006 to 2010, SR Million)

% Growth

200910

-3.1%

19.2%

6.5%

12.2%

2,222

3,065

4,805

7,292

8,690

972

1,003

8,583

5,191

327

2006

6,937

4,497

218

2010

16,387

6,725

2009

14,610

6,315

2008

10,919

5,520

594

2007

(1) The GWP is the total of accounted premiums. There may be double counting of reinsurance premiums accepted from other Saudi Arabian insurers or reinsurers

General

Health

P&S

The overall insurance Gross Written Premiums increased by SR 1.77Billion to reach SR 16.39 Billion(1) in 2010, compared to SR 14.61 Billionin 2009, which represents a growth rate of 12.2%

Health insurance remained the biggest line of business in 2010. Its

contribution to total GWP increased from 50% in 2009 to 53% in 2010,while General insurances contribution to total business volumedecreased from 43% in 2009 to 41% in 2010

Health insurance accounted for SR 1.39 Billion of the SR 1.77 Billionincrease, which represents a 78.6% contribution to the markets GWPincrease

Protection and Savings insurance remained the smallest line of

business accounting for 6% of total GWP, with a decrease in its writtenpremiums by 3.1% in 2010

In SRMillion

Protection

& SavingsHealth

Insurance

GeneralInsurance

Total

218 3%

2,222 32%

4,497 65%

6,937 100%

2006

SR(M)

%

Total

327 4%

3,065 36%

5,191 60%

8,583 100%

2007

SR(M)

%

Total

594 5%

4,805 44%

5,520 51%

10,919 100%

2008

SR(M)

%

Total

1,003 7%

7,292 50%

6,315 43%

14,610 100%

2009

SR(M)

%

Total

972 6%

8,690 53%

6,725 41%

16,387 100%

2010

SR(M)

%

Total


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Insurance Penetration

Insurance penetration of total GrossDomestic Product (GDP) is defined asGross Written Premiums divided by thetotal GDP

Over the past five years, insurancepenetration has been growing at acompounded annual growth rate (CAGR)of 17%

In 2010, insurance penetration decreased to1%, down from 1.06% in 2009. This is

mainly due to a strong growth in totalGDP (18.6% in 2010 compared to -21.2% in2009). The oil sector accounted for asignificant part of this growth

Insurance penetration of non-oil GDP isdefined as Gross Written Premiumsdivided by non-oil GDP

Insurance penetration of non-oil GDPincreased to 2.08%, up from 2.02% in 2009

Insurance penetration of non-oil GDP hasgrown at an average annual rate of 16%between 2006 and 2010 2009

2.02%

0.14%

1.01%

0.87%

2008

1.59%

0.09%0.70%

0.81%

2007

1.34%

0.05%0.48%

0.81%

2006

1.15%

0.04%0.37%

0.74%

2010

0.85%

1.10%

0.12%

2.08%

+16%

Insurance Penetration of Non-Oil GDP(2)

(2006 to 2010, % of Non-Oil GDP)

0.53% 0.53%0.27%0.22%

+17%

2010

1.00%

0.06%

0.41%

2009

1.06%

0.07%

0.46%

2008

0.62%

0.03%

0.31%

2007

0.61%

0.02%

0.37%

2006

0.53%

0.02%0.17%

0.34%

(1) Total GDP of SR 1,308, SR 1,414, SR 1,758, SR 1,384, and SR 1,642 Billion in 2006, 2007, 2008, 2009, and 2010, respectively(2) Non-oil GDP of SR 604, SR 642, SR 686, SR 723, and SR 788 Million in 2006, 2007, 2008, 2009, and 2010 respectively

Insurance Penetration of Total GDP(1)

(2006 to 2010, % of Total GDP)

% Growth

200910

-10.2%

-18.3%

-5.4%

0.5%

% Growth

200910

-2.3%

-11.1%

2.9%

9.3%

Total P&S Insurance

Total Health Insurance

Total General Insurance

Total P&S Insurance




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Insurance Density

Insurance density is defined as GrossWritten Premiums per Capita. Insurancedensity increased from SR 576 per Capitain 2009 to SR 604 per capita in 2010, which

represents a 4.9% increase

Expenditures per Capita on insuranceproducts have increased by an averageannual rate of 20% between 2006 and 2010

The density of Protection and Savingsinsurance remained low in absolute terms,

and relative to General and Healthinsurance, at SR 36 per Capita

94128

194

287320

3640

2009

576

249

2008

440

24

222

2007

358

14

216

2006

293

9

190

2010

+20%

248

604

Insurance Density(1)

(2006 to 2010, SR per Capita)

(1) Saudi population of 23.7, 24.0, 24.8, 25.4, and 27.1 Million in 2006, 2007, 2008, 2009, and 2010, respectively

% Growth

200910

-0.4%

-9.4%

4.9%

11.4%

Total P&S Insurance




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Motor and Health insurance accounted foraround 73% of total GWP in 2010

Health insurance, which includes bothcompulsory and non-compulsory lines ofbusiness, remained the largest line ofbusiness in 2010, accounting for 53% oftotal GWP

Motor compulsory and non-compulsorylines of business stood in second place witha 20% share of total GWP

Aviation insurance underwrittenpremiums increased by 75% in 2010

Health insurance was the second fastestgrowing line of business realising a growthrate of 19%

P&S underwritten premiums decreased by

3%

Gross Written Premiums by Line of Business

(1) A&L stands for Accidents and Liabilities insurance throughout the document

In SRMillion

Health

Motor

P&S

Property

Engineering

Energy

Aviation

Total

20072006 2008

SR M%

TotalSR M

%Total

SR M%

Total

2,222 32% 3,065 36% 4,805 44%

1,920 28% 2,440 28% 2,542 23%

218 3% 327 4% 594 5%

769 11% 742 9% 798 7%

544 8% 480 6% 682 6%

127 2% 305 4% 208 2%

126 2% 114 1% 139 1%

6,937 100% 8,583 100% 10,919 100%

2009

SR M%

Total

7,292

3,055

1,003

905

810

302

174

50%

21%

7%

6%

6%

2%

1%

14,610 100%

2010

SR M%

Total

8,690

3,239

972

959

869

329

304

53%

20%

6%

6%

5%

2%

2%

16,387 100%

Growth

%09 10

19%

6%

-3%

6%

7%

9%

75%

12%

A&L(1)+Other

580 8% 577 7% 531 5% 544 4% 507 3% -7%

Marine 431 6% 532 6% 620 6% 525 4% 518 3% -1%


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Gross Written Premiums by Line of Business (continued)

1,9202,440

2,542

3,055

3,239

905

959

972

1,003

798

742

769

869

810

127

174

139

114

126580

431544

218

2,222

2008

10,919

305577

532

327

3,065

2007

8,583

480

531620

682

594

208

2010

16,387

6,937

507

+24%518

8,690

329 304

2006

525544

302

4,805

2009

14,610

7,292

Health

Motor

P&S

Property/ Fire

Engineering

Marine

A&L and Other

Energy

Aviation

Gross Written Premiums by Line of Business(2006 to 2010, SR Million)


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Net Written Premiums (NWP) is defined asthe premiums retained by the insurancecompany, after the subtraction of thepremiums ceded to local or international

reinsurers from GWP by line of business

Total NWP increased from SR 10.07 Billionin 2009 to SR 11.80 Billion in 2010, a 17%increase

Around 86% of total NWP in 2010 wasgenerated by Motor and Health insurance

Health insurance remained the largest lineof business accounting for 60% of totalNWP compared to 55% in 2009

Motor insurance share of total NWPcontinued to decrease but remained insecond place. Motor insurance accounted

for 26% of NWP in 2010, down from 29% in2009

Net Written Premiums by Line of Business

In SRMillion

Health

Motor

P&S

A&L +

Other

Marine

Engineering

Property

Energy

Aviation

Total

%Total

SR M%

TotalSR M

%Total

SR M

200820072006

1,843 42% 2,403 43% 3,751 51%

1,814 42% 2,297 41% 2,459 34%

153 4% 267 5% 468 6%

243 6% 219 4% 217 3%

124 3% 170 3% 201 3%

84 2% 98 2% 122 2%

81 2% 84 2% 95 1%

0 0% 2 0% 1 0%

4 0% 4 0% 6 0%

4,347 100% 5,544 100% 7,321 100%

%Total

SR M

2009

5,557 55%

2,944 29%

908 9%

244 2%

183 2%

125 1%

105 1%

5 0%

1 0%

10,073 100%

%09 10

Growth

%Total

SR M

2010

7,120 60% 28%

3,099 26% 5%

877 7% -3%

276 2% 13%

175 1.5% -4%

114 1% -9%

127 1% 20%

7.6 0.1% 46%

4.8 0.04% 342%

11,800 100% 17%


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Net Written Premiums by Line of Business (continued)

3,099

2,944

2,459

2,297

1,814

153

877

908

276

244

1,843

4,347

2006

98219267

84243

2,403

5,544

2007

+28%

2010

11,800

7,120

175 127

2009

10,073

5,557

183 105

2008

7,321

3,751

468217201

Net Written Premiums by Line of Business(2006 to 2010, SR Million)

Property/ Fire

Engineering

Health

Marine

Motor

P&S

A&L and Other

Energy

Aviation


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Retention Ratio by Line of Business

The retention ratio measures the written premiumsretained by the insurance company. It is calculated bydividing the NWP by the GWP

The overall retention ratio of insurance companies in

the Saudi market increased from 67.4% in 2009 to 70.9%in 2010. This ratio is largely skewed due to the highretention ratio of Motor and Health insurance whichcollectively account for around 73% of total GWP. In2010, the retention ratios for Motor and Healthinsurance were 96% and 82%, respectively

The weighted average retention ratio of other insurance

lines of business (i.e., excluding Motor and Healthinsurance) reached 20.2% in 2010, down from 20.4% in2009

Notes:

- Newly licensed companies are required to adhere toa minimum retention ratio of 30% (as per Article 40

of the Implementing Regulations)- Retention ratios are not shown for Protection &

Savings insurance as the savings element of thecontract must be retained in the Saudi Arabiancompany. Therefore retentions for Protection &Savings insurance are not directly comparable withother insurance lines of business

97%

78%

41%

33%

12%

18%

4%

0%

1%

2%

15%

12%

35%

45%

76%

96%

2%

2%

70.9%20.2%

Aviation

Energy

Engineering13%

Property/ Fire13%

Marine34%

A&L & Other54%

Health82%

Motor96%

Retention Ratios by Line of Business(2008 to 2010, % of GWP)

2010

2009

2008

Weighted average excludingMotor and Health insurance

Weighted averageincluding all lines of

business


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Total gross claims paidincreased by 17% fromSR 7.26 Billion in 2009to SR 8.51 Billion in

2010 In 2010, Health and

Motor gross claims paidgrew by 36% and 16%,respectively comparedto 2009 figures

In 2010, Marine

insurance recorded thehighest growth rate ingross claims paid, afterincreasing by 66% fromSR 167 Million to SR 276Million

Table 6 in the appendix

contains all the grossclaims data by line ofbusiness from 2006 to2010

Gross Claims Paid by Line of Business

Gross Claims Paid by Line of Business(2006 to 2010, SR Million)

1,0111,218

1,492

1,621

1,882

570

92

+29%

2010

8,514

5,440

397276159

2009

7,255

4,010

167

2008

5,224

2,839

195140

2007

4,061

1,898

166170

2006

3,040

1,240

9

% Growth

200910

Total

Health

Motor

Property/ Fire

Marine

EngineeringEnergy

P&S

A&L and Other

Aviation

17%

49%

-41%

-19%

-76%

9%

66%

-13%

16%

36%


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General and Health Net Earned Premiums vs. Net ClaimsIncurred

9,616

7,966

5,983

4,628

3,855

6,554

5,649

4,088

3,111

2,344

200920082007 20102006

+16%

+21%

NEP

NCI

Net Earned Premiums Vs. Net Claims Incurred(2006 to 2010, SR Million)

Loss Ratio(% NEP)

Net Earned Premiums(NEP) is equal to NWPminus the change in netunearned premiums

reserve The insurance markets

General and Health NEPtotaled SR 9.62 Billion in2010, up from SR 7.97Billion in 2009, whichrepresents a 21% increase

General and Health NetClaims Incurred (NCI),i.e., the total of claimspaid plus the change inoutstanding and IBNRclaims reserve, increasedby 16% for the year 2010to reach SR 6.55 Billion

For 2010, General andHealth net claims ratio,i.e., the loss ratio, whichis equal to NEP dividedby NCI, decreased toreach 68.2%

68.2%70.9%68.3%67.2%60.8%


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1,059

65

1,117 1,138

159

1,234

+7%

+144%

+10%

Net ResultInvestment ResultUnderwritingResult

2009

2010

Insurance Market Profitability(2009-2010, SR Million)

Insurance Market ROA/ ROE(2010, % of total Assets/ Equity)

15.1%

4.7%

ROA ROE

Insurance underwriting result is the outcomeof subtracting all insurance related expensesfrom insurance revenues (NEP)

The net result is equal to the sum of

underwriting income, investment income,and other revenues minus other expenses1)

In 2010, the insurance underwriting resulttotaled SR 1.23 Billion, which represents a10% increase from 2009 figures

Investment income amounted to SR 159

Million in 2010 after recording SR 65 Millionin 2009

The insurance markets net result increasedfrom SR 1.06 Billion in 2009 to SR 1.14 Billionin 2010, which represents a 7% increase

Return on Assets (ROA) is the ratio of the2010 net result to 2009 Total Assets. In 2010,

insurance markets ROA was 4.7%

Return on Equity (ROE) is the ratio of the2010 net result to 2009 Total Equity. In 2010,Insurance markets ROE was 15.1%

Market Profitability

2010

1) Other revenues amounted to SR 50 Million, while other expenses amounted to SR 304 Million


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Balance Sheet - Policyholders Assets

At the end of 2010insurance companiesheld SR 1.94 Billion incash and cash

equivalents in theirpolicyholders accounts

Receivables accountedfor the biggest share ofpolicyholders assets,with a value of SR 5.36Billion

Total investmentsamounted to SR 5.25Billion

Policyholders(operational) assetsamounted to SR 18.84Billion

615,655467615,188Other Policyholders Assets

Total InsuranceProtection and

Savings Insurance

General and Health

Insurance

Item Name

1,244-1,244Investments in Subsidiaries andAffiliates

18,842,9552,271,42316,571,532Total Policyholders Assets [1]

2,537-2,537Intangible Assets

466,711910465,801Tangible Assets2,080,8841,904,582176,302Other*

9,861-9,861Real Estate

210,835-210,835Shares (common, preferred)

886,95721,978864,979Debt, Securities and Fixed Income

9,4899,489-Loans2,051,115113,2941,937,821Deposits at Financial Institutions

5,250,3852,049,3433,201,042Investments

366,082268365,814Prepaid Expenses

477,2902,340474,950Deferred Policy Acquisition Costs

4,360,52633,9874,326,538Reinsurance Recoverable

5,364,629111,0735,253,556Receivables, net

1,939,13973,0351,866,104Cash and Cash Equivalents

Policyholders Assets(2010, SR Thousand)

* Other investments consists mainly of investments in funds related to saving products


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Balance Sheet - Shareholders Assets

At the end of 2010,insurance companiesshareholders held SR1.96 Billion in cash and

cash equivalents Investments accounted

for the biggest share ofshareholders assets,with a value of SR 6.46Billion

Shareholders assets

amounted to SR 10.28Billion

Insurance companiestotal assets amounted toSR 29.13 Billion

6,459,750Investments

4,224,657Deposits at Financial Institutions

1,550Loans

1,188,957Debt, Securities and Fixed Income

643,694Shares (common, preferred)

-Real Estate

55,459Investment in Subsidiaries andAffiliates

345,433Other

29,126,059Total Assets [1] + [2]

625,019Distributions due from PolicyholdersAccount

25,770Accrued, Interest and Income

210,594Other Shareholders Assets


Savings InsuranceGeneral and Health

InsuranceItem Name

10,283,104Total Shareholders Assets [2]

758,313Intangible Assets

102,815Tangible Assets

141,621Receivables, net

1,959,221Cash and Cash Equivalents

Shareholders Assets(2010, SR Thousand)


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Balance Sheet - Policyholders Liabilities and Equity

At the end of 2010,insurance companiesheld SR 11.92 Billion intechnical reserves, which

consist of unearnedpremiums, outstandingclaims, IBNR andadjustment expensereserves

Mathematical reservesamounted to SR 1.54Billion

Policyholders liabilitiesand equity amounted toSR 18.75 Billion

7,021,29732,6896,988,608Unearned Premiums

18,210,5151,794,23816,416,277Total Policyholders Liabilities

538,345505,69332,652Accumulated Surplus

311,31920,791290,528Other Policyholders Liabilities

4,895,04950,2354,844,814Outstanding Claims, IBNR andAdjustment Expense

625,01943,958581,061Distributions due to Shareholders Account

1,267,92311,8211,256,102Accrued Expense and Deferred Income

261,9821,082260,900Unearned Reinsurance Commissions

2,6913912,300Declared Dividends Payables


Savings InsuranceGeneral and Health

InsuranceItem Name

18,748,8602,299,93116,448,929Total Policyholders Liabilities & Equity [3]

44,69598443,711Other Reserves

1,543,0221,543,022-Mathematical Reserves

11,916,34682,92411,833,422Technical reserves

1,705,71140,8881,664,823Reinsurance Balances Payables

531,80848,378483,430Policyholders Payables

Policyholders Liabilities And Equity(2010, SR Thousand)


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Balance Sheet - Shareholders Liabilities and Equity

At the end of 2010,shareholders liabilitiesamounted to SR 1.26Billion whileshareholders equitytotaled SR 9.12 Billion

Share capital constitutedthe biggest share ofshareholders equitywith a value of SR 8.17Billion

Shareholders liabilitiesand equity registered SR10.38 Billion

Insurance companiestotal liabilities and equityamounted to SR 29.13Billion

9,119,018Total Shareholders Equity

133,008Retained Earnings

29,126,059Total Liabilities & Equity [3] + [4]

623,924Statutory Reserves

439,171Other Shareholders Liabilities

193,273Other Shareholders Equity


Savings Insurance

General and Health

Insurance

Item Name

10,377,198Total Shareholders Liabilities & Equity [4]

8,168,814Share Capital

1,258,180Total Shareholders Liabilities

54,085Accrued Expenses and Deferred Income

251,343Zakat

513,581Shareholders Payables

Shareholders Liabilities And Equity(2010, SR Thousand)


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Health Insurance

8,690

7,120

6,210

4,443

Health

NCI

NEP

NWP

GWP

66%

61%

60%

53%

% Total

Retention Ratio Loss Ratio

81.9% 71.5%

Health Insurance Performance(2010, SR Million)

Health insurance, which includes both compulsory andnon-compulsory lines, accounted for 53% of the 2010total market GWP with SR 8.69 Billion in underwrittenpremiums

Health insurance accounted for 60% of the marketsNWP as insurance companies retained SR 7.12 Billion oftheir Health insurance GWP, which represents a 81.9%retention ratio

Health insurances NEP registered SR 6.21 Billion

Health insurances NCI amounted to SR 4.44 Billion,

which translates into a 71.5% loss ratio for the year 2010


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Retention ratio and loss ratio are not shown due to thesavings part of the premium which distorts the ratios

Protection and Savings Insurance

972

877

501

159

P&S

NCI

NEP

NWP

GWP

2%

5%

7%

6%

% Total

Protection and Savings InsurancePerformance

(2010, SR Million)

Protection and Savings insurances GWP totaled SR 972Million in 2010, which represents a 6% contribution tothe markets total business volume

Protection and Savings insurance accounted for 7% of

the markets NWP as insurance companies retained SR877 Million of GWP

Protection and Savings insurances NEP registered SR501 Million, which represents a share of 5% of total NEP

Protection and Savings insurances NCI amounted to SR159 Million


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Motor Insurance

3,2393,099

2,822

1,892

Motor

NCI

NEP

NWP

GWP

28%

30%

26%

20%

% Total


95.7% 67.1%

Motor Insurance Performance(2010, SR Million)

Motor insurances GWP totaled SR 3.24 Billion in 2010,which represents a 20% share of total market GWP

Motor insurances retention ratio of 95.7% was thehighest of all business lines. Motor insurance NWP

totaled SR 3.10 Billion

Motor insurances NEP amounted to SR 2.82 Billion andaccounted for 30% of the insurance markets NEP

Insurance companies recorded SR 1.89 Billion in Motorinsurances NCI which resulted into a 67.1% loss ratio


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Property/ Fire Insurance

959

12795

50

Property/ Fire

GWP

NWP

NEP

NCI 1%

1%

1%

6%

% Total


13.2% 52.6%

Property/ Fire Insurance Performance(2010, SR Million)

Property/ Fire insurances GWP totaled SR 959 Millionin 2010, which represents a 6% share of total marketGWP

Insurance companies retained only 13.2% of their

Property/ Fire insurance premiums as the businesslines NWP amounted to 127 Million. Property/ Fireinsurance contributed 1% to total market NWP in 2010

Property/ Fire insurances NEP registered SR 95 Million

Insurance companies recorded SR 50 Million inProperty/ Fire insurances NCI which translates into a

52.6% loss ratio


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Engineering Insurance

869

114 10540

Engineering

NCI

NEP

NWP

GWP

1%

1%

1%

5%

% Total


13.1% 38.5%

Engineering Insurance Performance(2010, SR Million)

Engineering insurances GWP totaled SR 869 Million in2010, a 5% contribution to total market GWP

Insurance companies retained 13.1% of their Engineeringunderwritten premiums. Engineering insurance NWP

registered SR 114 Million

Engineering insurance NEP amounted to SR 105 Millionand accounted for 1% of the insurance markets NEP

Engineering insurance recorded a loss ratio of 38.5%,with NCI, totaling SR 40 Million


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A&L and Other* Insurance

507

276

207

38

A&L and Other

NCI

NEP

NWP

GWP

1%

2%

2%

3%

% Total


54.4% 18.5%

A&L and Other Performance(2010, SR Million)

Accident and Liability (A&L) insurance includes thefollowing lines of business: personal accident, workrelated, employers liability, third party liability, generalliability, product liability, medical liability, professional

liability, theft & burglary, safe burglary, fidelity and anyother liability

Insurance companies underwrote SR 507 Million in A&Land Other general insurance premiums

Insurance companies retained SR 276 Million of A&Land Other general insurance underwritten premiums, a54.4% retention ratio

A&L and Other general insurance NEP totaled SR 207Million, which represents a 2% contribution to total NEP

Insurance companies recorded SR 38 Million in A&L andOther general insurances NCI which translates into a18.5% loss ratio

* Other insurance refers to all other business lines in general insurance


29/43


Marine Insurance

518

175 161

86

Marine

NCI

NEP

NWP

GWP

1%

2%

2%

3%

% Total


33.8% 53.9%

Marine Insurance Performance(2010, SR Million)

The Marine insurance line of business includes bothmarine cargo and marine hull insurance

Marine insurance GWP totaled SR 518 Million in 2010,which represents a 3% contribution to total market GWP

Insurance companies retained 33.8% of their Marineinsurance underwritten premiums as the business linesNWP amounted to SR 175 Million

Marine insurances NEP recorded SR 161 Million, whichrepresents a 2% share of total NEP for 2010

Marine insurances NCI amounted to SR 86 Million. Thisresulted in a loss ratio of 53.9%


30/43


Energy Insurance

329

8 12 2

Energy

NEP

NWP

NCI

GWP

0.02%

0.1%

2%

2%

% Total


2.3% 13.9%

Energy Insurance Performance(2010, SR Million)

In 2010, Energy insurance GWP totaled SR 329 Million,which represents a 2% share of total market GWP

Insurance companies ceded 97.7% of their Energyinsurance underwritten premiums. Energy insurance

NWP amounted to SR 8 Million

Energy insurances NEP amounted to SR 12 Million,accounting for only 0.1% of the insurance markets NEP

Finally, Energy insurances NCI amounted to SR 2Million resulting in a loss ratio of 13.9% for 2010


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Aviation Insurance

305

5 4 1

Aviation

NCI

NEP

NWP

GWP

0.02%

0.04%

0.04%

2%

% Total


1.6% 35.8%

Aviation Insurance Performance(2010, SR Million)

Aviation insurance GWP reached SR 305 Million in 2010,a 2% contribution to total market GWP

NWP for Aviation insurance reached SR 5 Millionresulting in a retention ratio of 1.6%

Aviation insurances NEP totaled SR 4 Million

Finally, Aviation insurances NCI amounted to SR 1Million resulting in a loss ratio of 35.8% for 2010


32/43

31

Other Market IndicatorsOther Market Indicators


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Commissions Incurred by Line of Business

Commissions Incurred by Line of Business(2006 to 2010, SR Million)

Total commissionsincurred amounted toSR 992 Million in 2010,compared to SR 850

Million in 2009, whichrepresents an increaseof 17%

General insurancerelated commissionsaccounted for 57% oftotal commissions

incurred in 2010 Health insurances

share of totalcommissions incurredrepresented 41% in2010

Protection and Savingsinsurancescommissions incurreddecreased by 48% in2010 and amounted to2% of totalcommissions incurred

185

230

282

341

63

66

74

285

60

55

56

53

49

55

7

321

4442

401

239

48

2008

770

44

42398

439

42

77

406

850

2009

21

2010

+23%42

31

992

130

32

43

479

2006 2007

576

% Growth

200910

28%

-48%

17%

1164%

-1%-5%

12%

20%

26%

P&S

Marine

Engineering

A&L and Other

Energy

Aviation

Health

Motor

Property/ Fire

41%

34%

7%

6%

4%4%

2%

0.7%

0.3%

% Total

Total 17% 100%


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The total number of insurance companies employees inSaudi Arabia reached 7,081 in 2010, up from 5,800 in 2009

Saudi nationals employed by insurance companies accountfor 50% of the total workforce, an increase of 3 percentagepoints from 2009 figures

In 2010, the Saudization ratio for non-managerial positionsincreased to 53% up form 52% in 2009, while theSaudization ratio for managerial positions increased to 33%up form 26% in 2009

Note: Newly licensed insurance companies are required toadhere to a Saudization ratio of 30% during the first year ofoperations (as per Article 79 of the Implementing

Regulations)

Employees Breakdown by Nationality

Number of Employees vs. Saudization Ratio(2010)

Nationality

No. of ManagerialEmployees

Total No. ofEmployees

No. of NonmanagerialEmployees

2009 2010 2009 2010 2009 2010

Other Arab

Other NonArab

Saudi

SaudizationRatio

Total

1,221 1,273 361 314 1,582 1587

1,083 1,606 382 336 1,465 1942

2,488 3,225 265 327 2,753 3552

52% 53% 26% 33% 47% 50%

4,792 6,104 1,008 977 5,800 7,081 0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95

Saudization Ratio

Number of EmployeesMinimum Saudization ratio


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Insurance Market Structure

In 2010, the top 8 insurancecompanies generated 71.1%of the insurance marketsGWP, an increase from67.6% in 2009

The remaining 26insurance companiesincluded in the reportaccounted for theremaining 28.9% of totalmarket premiums

Gross Written Premiums by Company(2008 to 2010, SR Million)

4,034

350

370

405

424

641

941

1,406

2,349

4,736

381

389

490

500

881

1,347

1,849

4,035

4,742

523

553

565

600

851

1,749

2,623

4,181

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 201020092008

Remaining26 companies

Market Share

71.1%

2008 2009 2010

Company 8

Company 7

Company 6

Company 5

Company 4

Company 3

Company 2

Company 121.5% 27.6% 25.5%

12.9% 12.7% 16.0%

8.6% 9.2% 10.7%

5.9% 6.0% 5.2%

3.9% 3.4% 3.7%

3.7% 3.4% 3.4%

3.4% 2.7% 3.4%

3.2% 2.6% 3.2%

36.9% 32.4% 28.9%


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Capitalization of Insurance Companies

Insurance companies equity increased form SR7.5 Billion at the end of 2009 up to SR 9.1 Billionat the end of 2010, with 23 companies exceedingSR 100 Million

The largest company by total equity isTawuniya, with total equity of SR 1.76 Billion atthe end of 2010 following an increase from SR 1.4Billion at the end of 2009

Note: the Law on Supervision of CooperativeInsurance Companies stipulates a minimumcapital of SR 100 Million for insurance

companies and SR 200 Million for companiesthat will undertake insurance and reinsuranceactivities

Insurance Companies Equity vs. NWP(2010, SR Million)

NWP

700600

500

400

3,000

300

2,900

200

1,900

1,800

1,700

100

0

Equity

400300200 1,8001,0001000

Number ofCompanies

Shareholders Equity (2010)

Up to SR 50 Million 7

SR 50 M to SR 100 Million 5




More that SR 500 Million 3


37/43

36

Appendix: Data TablesAppendix: Data Tables


38/43


Table 1: Gross Written Premiums by Line of Business

(2006 to 2010)Table 1: Gross Written Premiums by Line of Business (2006 to 2010)

14,610.1

1,002.8

7,292.0

6,315.3

810.3

301.7174.1

525.0

904.9

3,055.4

543.7

SRMillion

2009

100.0%

6.9%

49.9%

43.2%

5.5%

2.1%1.2%

3.6%

6.2%

20.9%

3.7%

%

100.0%

5.9%

53.0%

41.0%

5.3%

2.0%1.9%

3.2%

5.9%

19.8%

3.1%

%

16,387.4

972.2

8,690.1

6,725.1

869.2

328.9304.5

518.2

958.7

3,238.8

506.8

SRMillion

2010

12.2%100.0%10,918.9100.0%8,582.7100.0%6,937.3Total

-3.1%5.4%593.73.8%327.03.1%217.9Total P&S Insurance

19.2%44.0%4,805.235.7%3,065.032.0%2,222.2Total Health Insurance

6.5%50.6%5,520.160.5%5,190.764.8%4,497.1Total General Insurance

7.3%6.2%682.15.6%479.77.8%543.7Engineering

9.0%1.9%208.23.6%305.31.8%126.7Energy74.9%1.3%138.51.3%114.51.8%126.1Aviation

-1.3%5.7%619.66.2%531.66.2%431.4Marine

5.9%7.3%798.48.6%742.211.1%769.2Property/ Fire

6.0%23.3%2,542.128.4%2,440.227.7%1,920.2Motor

-6.8%4.9%531.36.7%577.38.4%579.6A&L and Other

%SR

Million%SR

Million%SR

Million

%Change09 - 10

200820072006

Line of Business


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Tables 2 & 3: Insurance Penetration and Density

(2006 to 2010)Tables 2: Insurance Penetration (2006 to 2010)

Tables 3: Insurance Density (2006 to 2010)

575.8

39.5

287.4

248.9

SR

2009

1.06%

0.07%

0.53%

0.46%

%

2009

4.9%603.9440.1357.9292.9Total

-9.4%35.823.913.69.2Total P&S Insurance

11.4%320.2193.7127.893.8Total Health Insurance

-0.4%247.8222.5216.5189.9Total General Insurance

SRSRSRSR

% Change09 - 10

2010200820072006

Line of Business

-5.4%1.00%0.62%0.61%0.53%Total

-18.3%0.06%0.03%0.02%0.02%Total P&S Insurance

0.5%0.53%0.27%0.22%0.17%Total Health Insurance

-10.2%0.41%0.31%0.37%0.34%Total General Insurance

%%%%

% Change09 - 10

2010200820072006

Line of Business


40/43


Table 4: Net Written Premiums by Line of Business

(2006 to 2010)Table 4: Net Written Premiums by Line of Business (2006 to 2010)

10,073.2

908.0

5,556.9

3,608.4

125.3

5.2

1.1

183.2

105.1

2,944.1

244.3

SRMillion

2009

100.0%

9.0%

55.2%

35.8%

1.2%

0.1%

0.01%

1.8%

1.0%

29.2%

2.4%

%

100.0%

7.4%

60.3%

32.2%

1.0%

0.1%

0.04%

1.5%

1.1%

26.3%

2.3%

%

11,799.7

876.8

7,120.0

3,802.9

113.9

7.6

4.8

175.4

126.5

3,098.8

275.9

SRMillion

2010

17.1%100.0%7,320.6100.0%5,543.8100.0%4,346.9Total


28.1%51.2%3,750.943.3%2,403.142.4%1,842.5Total Health Insurance

5.4%42.4%3,101.651.8%2,873.954.1%2,351.2Total General Insurance

-9.1%1.7%122.21.8%97.61.9%84.2Engineering

46.0%0.0%0.90.0%2.40.0%0.0Energy

341.6%0.1%5.50.1%3.60.1%4.3Aviation

-4.3%2.8%201.53.1%169.82.9%124.4Marine

20.3%1.3%95.41.5%84.11.9%80.8Property/ Fire

5.3%33.6%2,458.741.4%2,297.341.7%1,814.1Motor

12.9%3.0%217.34.0%219.25.6%243.4A&L and Other

%SR

Million%SR

Million%SR

Million

%Change09 - 10

200820072006

Line of Business


41/43


Table 5: Retention Ratio by Line of Business

(2006 to 2010)

Retention ratios are not shown for Protection & Savings in this table as the savings element of the contract must be retained in the SaudiArabian company, so retentions are not directly comparable with other insurance contracts.

Table 5: Retention Ratio by Line of Business (2006 to 2010)%

56.5%

13.1%

2.3%

1.6%

33.8%

13.2%

95.7%

54.4%

67.4%

76.2%

%

2009

5.2%70.9%66.4%63.9%62.4%Total

7.5%81.9%78.1%78.4%82.9%Total Health Insurance

-1.0%57.1%56.2%55.4%52.3%Total General Insurance

-15.3%15.5%17.9%20.3%15.5%Engineering

33.9%1.7%0.4%0.8%0.0%Energy

152.5%0.6%4.0%3.1%2.9%Aviation

-3.0%34.9%32.5%31.9%28.8%Marine

13.6%11.6%11.9%11.3%10.5%Property/ Fire

-0.7%96.4%96.7%94.1%94.5%Motor

21.2%44.9%40.9%38.0%42.0%A&L and Other

%%%%

% Change09 - 10

2010200820072006

Line of Business


42/43


Table 6: Gross Claims Paid by Line of Business

(2006 to 2010)

20102009200820072006

Line of Business

Table 6: Gross Claims Paid by Line of Business (2006 to 2010)

%Change

09 - 10%

SR

Million%

SR

Million%

SR

Million%

SR

Million%

SR

Million

100%

2%

55%

42%

2%

8%0%

2%

6%

22%

1%

7,255.4

169.2

4,010.0

3,076.2

145.6

570.117.8

166.7

456.1

1,621.4

98.4

17.3%100%8,513.8100%5,223.6100%4,061.2100%3,040.2Total

-19.5%2%136.23%140.31%38.01%34.9Total P&S Insurance

35.7%64%5,440.254%2,839.247%1,897.941%1,240.4Total Health Insurance

-4.5%35%2,937.343%2,244.152%2,125.358%1,764.9Total General Insurance

9.3%2%159.22%111.75%219.23%102.2Engineering

-75.7%2%138.51%26.50%6.20%9.0Energy49.4%0%26.50%11.52%62.81%18.5Aviation

65.8%3%276.54%195.14%165.95%154.9Marine

-12.9%5%397.36%314.97%283.010%299.9Property/ Fire

16.0%22%1,881.529%1,492.430%1,217.933%1,010.5Motor

-41.2%1%57.82%92.04%170.26%169.8A&L and Other


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Table 7: Commissions Incurred by Line of Business

(2006 to 2010)

%Change09 - 10

20102009200820072006

Line of Business %SR

Million%SR

Million%SR

Million%SR

Million%SR

Million

Table 7: Commissions Incurred by Line of Business (2006 to 2010)

850.0

40.4

320.7

488.9

48.0

0.6

2.5

42.3

66.4

285.1

44.1

100.0%

4.7%

37.7%

57.5%

5.6%

0.1%

0.3%

5.0%

7.8%

33.5%

5.2%

100.0%

2.1%

40.9%

57.0%

5.7%

0.7%

0.3%

4.2%

7.5%

34.4%

4.2%

992.2

20.9

405.9

565.5

56.3

7.0

3.2

41.6

74.1

341.4

41.8

16.7%100.0%769.6100.0%575.9100.0%439.4Total


26.5%31.0%238.922.5%129.817.5%76.9Total Health Insurance

15.7%64.8%498.775.9%437.180.7%354.8Total General Insurance

17.4%5.8%44.37.5%43.57.1%31.4Engineering

1164.2%0.4%3.00.5%2.90.2%0.9Energy

27.8%0.3%2.40.3%1.90.5%2.3Aviation

-1.4%7.1%54.98.1%46.88.8%38.5Marine

11.7%7.7%59.511.0%63.212.5%54.8Property/ Fire

19.7%36.6%281.639.9%229.642.1%185.2Motor

-5.3%6.9%52.88.5%49.29.5%41.8A&L and Other

sur insuamarketsurvey2010 en 2010

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